Banks That Offer a Bank Statement HELOC With 30% Equity in the Property

The Quick Read: Thirty percent equity equals a 70% combined loan-to-value, which can work for a statement-documented home equity line on a primary residence, a second home, or an investment property. Whether a lender approves it depends on your credit, occupancy, title, and documented income. Large retail banks often skip this product. The lenders that write it sit mostly in portfolio and wholesale channels, and a broker can shop several of them at once.

• 30% equity equals a 70% CLTV, which is the top ceiling on an investment-property line in the wholesale network Lendmire works with.
• Primary residences and second homes can reach higher ceilings, but only at stronger credit scores.
• The line limit counts toward leverage in full, whether or not you draw all of it.
• Title matters: an LLC cannot hold title on these lines, and a property already in an LLC needs a different structure.
• Rent is not what qualifies you for a line, since the file is reviewed on your income rather than the property’s. If rental income is your strength, a DSCR cash-out refinance may fit better.

What Is a Bank Statement HELOC?

A bank statement HELOC is a home equity line of credit where deposit history helps document your income instead of tax returns. A HELOC is a revolving line secured by your property. You borrow against it, repay, and borrow again during a set draw period.

Self-employed investors use this product because heavy business write-offs can make tax-return income look small. Deposits tell a different story. Whether a lender accepts statements, and how it turns deposits into qualifying income, varies by program. Under the applicable program, income is reviewed on documented deposits, subject to lender guidelines. The line is still underwritten against your debts, your credit, and the property.

Here is the part the search term hides. You are not looking for a bank so much as a lender type. NerdWallet notes that not every lender offers lines on investment property, and that the ones that do apply stricter requirements. The lenders that write statement-based lines tend to be portfolio lenders and wholesale lenders, which is why shopping through a broker matters here.

Key Terms Defined

CLTV (combined loan-to-value): Your first mortgage balance plus the full line limit, divided by the property’s appraised value.

Equity: The property’s value minus what you owe on it. Thirty percent equity means you owe 70% of value.

Draw period: The stretch when you can borrow from the line, usually with interest-only payments.

Lien position: Whether the line sits first or behind another mortgage. A standalone line can sit in either position.

DTI (debt-to-income): Your monthly debts divided by your monthly income. On a statement-documented line, income comes from your deposits.

DSCR: Debt service coverage ratio. A DSCR loan compares a rental’s income to its full monthly housing payment, so it reviews the property’s rental income rather than you.

How Underwriting Treats 30% Equity, Step by Step

Thirty percent equity gets you to the starting line, not across it. Here is how a lender reads the file.

Step 1: Equity becomes CLTV. The lender adds your first mortgage balance and the full line limit, then divides by appraised value. The federal consumer-finance regulator’s HELOC booklet describes how lenders set the credit limit as a percentage of home value less what you owe. Thirty percent equity means 70% CLTV is the most the combined debt can reach.

Run it with percentages. Say your first mortgage sits at 45% of value. A line limit of 25% of value brings you to 70% CLTV, which uses up your equity cushion. If the first mortgage sits at 55% of value, the line tops out near 15% of value.

Step 2: The ceiling depends on occupancy and credit. The table below shows the lowest credit tier at which each occupancy type can reach at least 70% CLTV. All figures are typical program ranges from select wholesale lenders, subject to lender guidelines and full file review.

On a primary residence, a 700+ score opens 75% CLTV up to $750,000, and a 720+ score can reach 70% CLTV up to $500,000. On a second home, a 720+ score also reaches 90% CLTV up to $500,000. The 90% figure exists only at a 720-or-better credit profile. On an investment property, 70% CLTV is the ceiling at every credit tier, and the minimum credit score is 700.

Step 3: Income is documented. For a statement-based file, the lender reviews your deposits under the applicable program and arrives at qualifying income. The details are set by the lender, so ask which statements it accepts and for how many months.

Step 4: DTI is tested. Maximum DTI is 50%, falling to 45% for credit profiles from 600 to 679, and a ratio above 45% requires at least a 680 score. The lender reviews your file on the interest-only payment calculated on the maximum draw, not on what you plan to borrow.

Step 5: Credit and property are checked. The program credit floor is 600 on a primary residence, though occupancy raises it: 640 on second homes and 700 on investment properties. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Lines at or below $500,000 ordinarily run an automated valuation instead of a traditional appraisal. You can request a full appraisal in any case.

Step 6: The line closes and draws begin. Investment lines use a 5-year interest-only draw followed by a 25-year fully amortizing repayment. At least 75% of the line is drawn at closing. Pricing floats during both periods and never converts to fixed. That variability is worth sizing against your cash flow.

Structures and Variations

The line can sit in first or second lien position. That matters if you have a low-cost first mortgage you want to keep. A standalone line behind it preserves that loan. A standalone line in first position works when there is no existing mortgage.

Primary residences and second homes have two draw structures: a 3-year interest-only draw with a 17-year repayment, and a 5-year draw with a 25-year repayment. Investment properties get only the 5-year structure. A line above $500,000 is for primary residences only. It requires a 700 or better credit profile (720 on the 5-year draw structure), caps at 75% CLTV, and needs a full appraisal.

A borrower can hold up to three lines, and anyone owning more than 15 financed properties is not eligible. The minimum draw after closing is $1,000 on most files.

Equity-line programs operate in a narrower set of states than the DSCR footprint of 41 markets, including Washington, D.C. Your state affects whether this product is on the table at all.

Where the General Rule Breaks

The 30% rule of thumb fails in several named cases.

A recent purchase. A rental bought with high leverage may already sit above 70% CLTV. Thirty percent equity is rare on a property you closed on recently. For purchase-side options, see Lendmire’s piece Banks That Offer a Bank Statement HELOC to Close on an Investment Property.

Title held in an LLC. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title on these lines. Only an individual or a revocable living trust can. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out instead.

Ineligible property types. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not eligible on these lines. Single-family, 2-4 units, PUDs, townhomes, and condos are eligible, including non-warrantable condos. A 2-4 unit property needs a 640 minimum on the 5-year draw structure.

A listed property. In several states, a property listed for sale, or listed within the past 60 days, is ineligible.

Credit between tiers. At 600 to 639, a primary residence caps at 60% to 70% CLTV, which falls short of 70% on the lower end. Below 700, an investment property is not eligible.

Falling values. The CFPB booklet also warns that lenders can freeze or reduce a line if the home’s value drops significantly. With only 30% equity, a market dip narrows your cushion quickly. The booklet also warns that a line’s terms may restrict renting out the home.

Another point trips up many borrowers. If the line sits on your primary residence, trouble with a rental can reach your own home. The collateral is the house you live in.

One Short Business-Purpose Note

DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s commentary on business-purpose credit says lenders decide purpose case by case. That is one reason the same property can be handled differently across lenders.

When a DSCR Cash-Out Refinance Fits Better

A statement-based line underwrites you. A DSCR loan underwrites the rental. The two answer different questions, and the right one depends on your file.

Consider a DSCR cash-out if any of these describe you:

• You hold the property in an LLC. DSCR loans can be made to LLC-titled borrowers, subject to lender program eligibility.
• Your equity sits in a rental, and no lender will put a line on it.
• Your strength is the property’s rent, not your personal income documents.
• You want a fixed-term structure rather than a floating line.

The numbers differ. Cash-out refinances on standard rentals typically top out around 75% LTV across most of the network, with about 6 months of seasoning as the common expectation. On short-term-rental collateral, a cash-out ceiling is 70%. A cash-out replaces your first mortgage, so it only helps if your existing loan is not cheaper than what you’d trade it for. Thirty percent equity is a fair opening position, since 70% leverage sits under the 75% ceiling on a standard rental.

Coverage is the second test. A rent-to-payment ratio of 1.00 is where many select programs start, and a stronger ratio opens better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Credit floors begin at 620 in parts of the network, most programs want around 660, and 700+ unlocks the strongest leverage tiers. Loans run up to $3,000,000 on standard programs (smaller balances available through select lenders), and reserves commonly sit around 6 months, depending on the lender, loan size, and leverage.

One caution: clearing 1.00 is not positive cash flow. The DSCR calculation compares rent to principal, interest, taxes, insurance, and any association dues. Repairs, vacancy, management, and utilities sit outside it. Properties that are not offered in the network’s DSCR programs include manufactured homes, log homes, and barndominiums. For the full picture of how these loans work, see the complete DSCR loans guide.

What the Decision Looks Like in Practice

The strongest files clear both tests: enough equity and enough documented income. A larger down payment on a purchase lowers the payment and can lift coverage, but it never erases leverage caps, credit floors, or property eligibility. The same logic applies to equity lines.

Before you apply anywhere, work through this checklist:

1. Calculate your CLTV using the full line limit, not the amount you plan to draw.

2. Confirm your occupancy type and the credit tier you land in.

3. Check that title is held by you individually or in a revocable living trust.

4. Gather the statements the program asks for, and know your DTI on the interest-only payment.

5. Confirm the property type is eligible and was not recently listed.

6. Ask whether the lender will place a line on a rental at all.

If the answers line up, a statement-based line may fit. If title, occupancy, or credit blocks you, a DSCR cash-out is often the next structure to review.

If you are considering a home equity line and want to see how the numbers work, Lendmire can help you compare HELOC options based on the property, the equity available, credit profile, combined leverage, and your goals. Lendmire is a mortgage broker arranging financing through select wholesale lenders, and every file is reviewed individually. Nothing here is a commitment to lend.

About Lendmire

Lendmire, NMLS# 2371349, is a mortgage brokerage that arranges home equity lines of credit through wholesale lending partners in its 16 full-service states. Lines on primary residences, second homes and investment properties are each reviewed individually by the lender under the program’s occupancy, credit and combined-loan-to-value guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. NerdWallet: HELOC on an investment property

2. CFPB HELOC booklet

3. CFPB commentary on business-purpose credit